Choose New Zealand Forex Brokers For Highly Secure FX Trading
New Zealand is a relatively new entry to the retail trading industry, and although the country has several advantages going for it regarding economic and commercial viability, the retail Forex trading market had taken a massive hit due to the numerous financial scams that the country had witnessed over the years. New Zealand’s regulatory guidelines of the past were rather inconsequential in tackling financial abuse, and a large part of the New Zealand economy plummeted during the financial crisis of 2007-08. The financial ruin was further magnified by the severe inaction and the highly complacent nature of New Zealand’s former regulatory organization, known as the Securities Commission of New Zealand. However, all that changed when the New Zealand Parliament acted on its shortcomings by dissolving the Securities Commission and introducing an all new regulatory authority that proved to be far more effective than any of the other regulatory agencies combined. The FMA (Financial Markets Authority) of New Zealand is single-handedly responsible for turning around New Zealand’s misfortunes by stemming the growth of scams and ensuring investor protection through proactive methods of regulation. Today, New Zealand Forex brokers are highly regarded for their commitment towards trader trust, honest brokerage services, genuine customer service, the safety of client funds, and an overall dedication towards maintaining the integrity of the markets. The primary duty of the FMA is to ensure that all Forex brokers follow the strict guidelines enforced by the regulatory organization, failing which, the FMA has full authority to issue, revoke, and cancel licenses along with inducing fines and other penalties for financial irregularities.
Here is a list of the best Forex Brokers in New Zealand:
Best and most trusted forex brokers in New Zealand February 2021
All the brokers below are available in: New Zealand
Are New Zealand Forex Brokers Any Different From Other FX Companies?
Forex brokers from New Zealand are largely similar regarding regulatory compliance when compared to other regulated companies from countries such as Australia, UK, and Europe. New Zealand FX brokers have also adopted a similar legal structure and services portfolio that are implemented by its Australian counterparts. Therefore, traders have extensive freedom while trading the markets, and do not face any limitations that are usually enforced by the agencies such as NFA and the CFTC. In fact, modern Forex brokers located in New Zealand are more concerned about consumer welfare due to the strict FMA regime. FMA is quick to impose penalties and revoke licenses if any broker is deemed to have deviated from any of the FMA guidelines. The sanctions were extended to such an extent that even honest brokerages faced suspension of licenses due to them being unable to conform to the new standards of regulation. Several genuine and reliable Forex brokers had voiced their concerns over the inability of the FMA to organize a smooth transition from the Security Commissions guidelines, and some of the even had their licenses terminated for no apparent reason. The FMA has reinstated the licenses of all reliable Forex brokers operating in the country but has given specific guidelines to all companies to ensure that they adhere to the regulatory framework without fail. Therefore, as far as the safety of the investors is concerned, New Zealand and FMA provides the best regulatory environment for Forex trading.
What Are The Different Forex Broker Regulation Authorities of New Zealand?
The Financial Markets Authority (FMA) is the primary regulator for all financial companies in New Zealand. Brokers are also required to register their business with the Financial Service Providers Register (FSPR) and the Financial Services Complaints (FSCL) agency. A trader can always search whether a broker is genuine and regulated simply by searching the FMA, FSPR and FSCL databases for an in-depth analysis of the company. FMA releases periodic updates and press releases about the current state of the financial markets and the agency also issues warnings and notices about potential scams, unregistered business, and deregulated brokers. FMA ensures that every New Zealand investor has the best resources and information to stay protected against financial abuse, and to safeguard their investments from potential scams.
Why You Should Choose FX Brokers From New Zealand
There are countless reasons for selecting a broker based in New Zealand. First of all, the new regulatory structure is highly conducive to a safe and secure trading environment. Forex brokers will always safeguard your trading capital, and will always ensure that you receive the best services without any compromises. Secondly, Forex brokers in New Zealand do not impose any trading restrictions. Therefore, you can start trading with as low as $1, and use up to 1:3000 leverage or even higher, provided your broker offers such a significant amount of leverage. New Zealand Forex brokers also provide a broad range of payment options, and the FMA does not restrict any broker from catering to clients from foreign countries. Therefore, international traders can deposit their money into FX brokers from NZ, as long as they follow all anti-money laundering laws. NZ brokers also facilitate easy and fast withdrawals, without holding on to the funds for a long time.
Why You Should Avoid New Zealand Forex Brokers
New Zealand provides an FX brokerage platform that is similar to other popular countries, including the UK, Cyprus, and Australia. However, if a broker forecloses due to any unpredictable circumstances, regulatory agencies such as the FCA (UK) and the CySEC (Cyprus) guarantees up to $50,000 in investor compensation. The FMA, on the other hand, does not provide any such compensation or insurance against broker liquidation, which can prevent investors from recovering a part of their trading capital if a broker closes shop. Most retail traders invest anywhere from $1000 to $100,000 in the FX markets, and an investor compensation fund aims to provide better protection for an investor against broker issues. The lack of an investor protection fund from FMA can hinder traders from signing up with the broker. Although new FMA regulation seeks to cut down instances of financial crimes, new FMA regulations are mostly considered to be against a broker’s interest. Therefore, companies are shutting down their New Zealand operations and moving to other better regulators situated in Australia and mainland Europe. Therefore, there is always an uncertainty about the long-term future of a New Zealand Forex broker, should the company decide to wind down its NZ operations.
Nevertheless, New Zealand Forex brokers do provide excellent Forex products that are carefully regulated by the FMA for enhancing investor trust. Therefore, you shouldn’t worry about the future of FX brokers in the country, as FMA’s new reforms will act to make the process of regulation transparent, stable, and profitable for all parties concerned.